The $100 million settlement proposal that Uber put up in California and Massachusetts class action suits has been turned down by a U.S district judge. As is usually the case when a settlement is turned down by a judge it was because it was viewed as too low.
Uber stated that the settlement was previously agreed upon by both sides and felt that it was “fair and reasonable.” As a result, the company is looking at another way to tackle the settlement, but it seems as though the only way to deal with it is to present an amount the judge views as fair since they have the last word.
The nature of the class action suits come from whether or not Uber drivers are actually employees and should get employee benefits as determined by the state. Uber typically refers to its drivers as independent contractors to avoid having to deal with giving benefits such as insurance and fuel costs.
By Uber offering $100 million instead of something higher would’ve allowed Uber to avoid dropping a lot of money on it and keep employee statuses as they are now. Uber could’ve ended up paying up to $852 million which is how the settlement came to being dumped by the district judge.